tv BBC Business Live BBC News September 13, 2017 8:30am-9:01am BST
this is business live from bbc news with sally bundock and ben thompson. does the new iphone 10 get ten out of ten? apple's latest money spinner is unveiled with much fanfare, but is it worth its $1,000 price tag? live from london, that's our top story on wednesday, 13th september. apple's "core" product gets a makeover, but is iphone 10 more evolution than revolution? we get an expert view. also in the programme — no britain — no problem. the commission president is calling for greater integration after brexit in his state of the european union address. but how convincing is he? a top economist is with us. and later in the programme:
are you terrified of public speaking? we'll be talking to an app developer who's created a virtual reality app to solve your stage fright. and so today we want to know, what's your biggest fear? is it work presentations? presentations maybe it is a fear of flying or heights. let us know, just use the hashtag, #bbcbizlive. hello and welcome to business live. i have shared my worst fear on twitter with a video. take a look, hashtag bbc business live. this year is the tenth anniversary of the iphone and the latest version has a new screen, new camera, no home button, and a big price tag of $1,000. the iphone 10 uses a facial
recognition system to recognise its owner rather than a fingerprint—based one. but will all this be enough to drive growth at the world's biggest tech company? the firm's share price has soared over the past few months. since december last year, it has climbed more than 50% and is now just over $160 a share. but not everything is well at the tech giant. it's been struggling in china where it's losing market share to competitors. in the last quarter its revenue in the country fell by 9.5% tojust over $8 billion. and a big question — is apple innovating fast enough to compete with its rivals? 0liver smith is a senior reporter at tech publication, the memo.
the usual fanfare last night from apple. what did you make of it the launch? it was a great event. there was lots of products. the new apple watch and the iphone 8 which most people will be getting and then the big one, one more thing, the iphone 10 which we had been expecting, it was rumoured and apple came out of the park and delivered on everything we have been hoping for. as far as features are concerned, how does it compare. some features are available elsewhere? is it that they are all packaged together? this is the apple way of doing it. they take the things in the market and they do it better and put it into one package and that's the iphone 10. better and put it into one package and that's the iphone10. the better and put it into one package and that's the iphone 10. the edge to edge screen, we have seen that on
some of the samsung phones, but we have never seen it on an apple product. you talk about facial recognition. let's look at happened during that when things didn't go aid cording to plan. i'm locking it. it's as easy as looking at it and swiping up. let's try that again. 0h... let's go to back up here. and get writing. so, here we are, and you see this expansive, beautiful canvas with all of your content. it was a cringe moment. they are
asking us to trust facial recognition and they have got to prove that it works every single time and that demo was not a great start. what struck me about that as well, your fingerprint you start. what struck me about that as well, yourfingerprint you can start. what struck me about that as well, your fingerprint you can use in the dark should you need to. that stage looked dark, are they saying there maybe a few problems with facial recognition? they say that what we have developed will work in the day time and night—time and will work if you are wearing sunglasses 01’ work if you are wearing sunglasses or if your hair grows longer. they say it will adapt. we may have to wait longer to find out for sure. $1,000, and interestingly £1,000 and that's for the cheapest one? there is no price difference, us, uk, it used to be a little bit of price difference, now it is £1,000 in the uk and the highest model goes up to £1100 with a larger storage size. who do they want to buy? who is
their customer? it will be people who are extremely passionate about high end phones, you know, this is the best phone on the market and it will, the reviews will say it is the best phone on the market, but it is the price of a laptop. it's the price of a car. it's a heck of a lot of money to be spending on a phone. it is. 0liver, thank you for that. interesting to see how this will play out now, but in the meantime, thank you very much. many of you have been in touch with your views about apple's launch. this made me chuckle. a viewer says, "due to company password policy, we will be requiring all staff to have theirface surgically will be requiring all staff to have their face surgically altered every 90 days! " let's take a look at some of the other stories making the news: sa 0j to let san to let customers to use its website to book long haulflights by other carriers. easyjet will team up
with norwegian and westjet to offer flights to north and west america and singapore. the chief executive of us credit reporting agency equifax has promised to make changes after the company suffered one of the biggest data breaches in history. the hacking attack affected 143 million us customers and the firm now faces multiple lawsuits and a possible federal investigation. news that came through yesterday. the pr firm embroiled in a racism scandal has collapsed into administration in the uk. bell pottinger was accused of running a racially charged pr campaign in south africa and put itself up for sale last week, but could not find a buyer. administrators say the firm had been "heavily financially impacted" by the scandal. the president of the european union jean—claude juncker has been giving his state of the union address.
the resounding message is that the eu is very much open for business. let's speak with david 0wen, chief european economist, jefferies joins us from the bbc newsroom. nice to see you. hi. what do you make of what he has said so far? he is trying to sound as bullish as he can about the eurozone? about the rest of the eu. he laid out a white paper back in march where he gave various options for what the eu should do with the uk leaving the eu ina should do with the uk leaving the eu in a couple of years' time. 0bviously, we're looking at closer integration. the backdrop for this is more favourable because the european economy is surprising on the up side. we have had the french election results, we have got french structural reforms being pushed through and there is a lot more optimism around the whole project. the key thing now is to drive some of these reforms through and make europe much more competitive and also, of course, include the uk as a
very important economy outside the eu. that should be their priority. david, how will this be seen in the uk? where are we in the divorce proceedings? are we pass the grief and the anger stage, are we getting to the pragmatism ? and the anger stage, are we getting to the pragmatism? the pragmatism, it wouldn't be surprising if negotiations broke down for a period. we have got the heads of state meeting coming up in late 0ctober. it has been very difficult to agree some of these things and i think things will go to the wire and it is obvious the transitional phase is needed, but the uk is important for the rest of the eu, let's not forget that, and the eu has to find a way to retain access and relationship with the uk going forward. so, pragmatism and compromise will be needed on both sides. it is good to talk to you, david, thank you very much. david 0wen there. this is how the day progressed in asia. we had hong kong down. the
night before we had gains on wall street. so the record highs continuing state—side, it would seem. today a mixed picture in asia. of course, the stocks that were really on the move were all the apple suppliers, man of them, that make bits for the iphone are based in taiwan and south korea and japan. so those stocks were sensitive. let'sths let's look at europe again. again, the global equity share rally is faltering today in europe. so we're seeing slight down. there is probably profit taking. interestingly one quote from an a nalyst interestingly one quote from an analyst is apple suppliers, some in europe, they're down because of the later than expected shipping date of the new phones. and samira hussain has anyway, let's the details about what's ahead on wall street today. the forecast is predicted to have
risen 2.5% for the month of august compared to a 1.9% increase injuly. ppi is a price index that measures the average changes in prices by domestic producers for the goods they are making. now, this is an important measurement of inflation and of course, a big concern to the federal reserve, that's america's central bank. fed policy makers seem to be really split on the outlook for inflation and how that will play out for future rate increases. stabilising prices ie inflation is a big part of the fed's mandate as established by congress, the other mandate is to maximise employment. joining us is lucy macdonald, chief investment officer for global equities at allianz global investors. nice to see you. let's pick up on what sally was mentioning about investors in apple and certainly
apple supplies and component parts because those are the ones that have seen most volatility? there is a tendency on the apple launches for a lot of excitement before and then, you know, a little bit of disappointment afterwards and i think we're seeing that again. the shares at apple had a very good year, up about 40% partly because they started very cheap and from an investment point of view looking at them now, there looks as if there is some value left in there, they are not an expensive share, it is not a very expensive share. it does now pay a dividend. so it has got yield of 1.5%, pay a dividend. so it has got yield of1.5%, but pay a dividend. so it has got yield of 1.5%, but the issue is about growth with apple and that's the focus and it's very difficult to forecast and it is very dependant still on the iphone and it is about 70% of earnings. so, what happens with the iphone going forward is the
most important thing. it strikes me too, we talked about the price tag, $1,000 for it, that will be dependant on the world economy. if people have money in their pocket, maybe they will be tempted to buy it. if they don't, that's not one thing that they will be forking out for, is it? we have done a certain amount of consumer research and the upgrading spention is there. people have been holding back on upgrading, but i think it is a test point, you know, so they are really testing the market to see how much it will bear, a third of all iphones are due for an upgrade. so that will be the test, but it is very dependant on that. it has a services business which it is growing now, apple pay and that's only 12% of the business, but it is growing, but for the next couple of years it will be really dependant on the iphone. lucy will return. she has got to wade through other stories, one of which is about the bitcoin. we will stay with
technology later too because we are talking about how it could help tackle public speaking jitters. if you stress about speaking in front of people, you may want to stay tuned. you're with business live from bbc news. there are some things you may not consider buying online, a mattress 01’ consider buying online, a mattress ora bed. you would probably want to try it out ina you would probably want to try it out in a shop first. well, eve, one of the firms that's launched to sell you a mattress via the internet has issued its first set of results since listing on london's alternative investment market. revenues were up 126%, but pre—tax losses grew to £9.1 million. so what's going on?
jas bagniewski is founder and chief executive of eve sleep, hejoins us now. you are a small, start—up company, it is normal that you are not making good profits yet. absolutely. we are ina good profits yet. absolutely. we are in a growth phase at the moment, we interested in internationalisation and growing our brand across europe. in terms of ground presence, i looked at what you have been saying in recent months. one thing you said was that buying beds in a shop is very old school and archaic, but thatis very old school and archaic, but that is exactly what you are doing. you have done a deal with germany's because department store. is that a big u—turn from you? because department store. is that a big u-turn from you? we have been in stores for a while. it is a smaller pa rt stores for a while. it is a smaller part of our business. we know some customers like to try the product beforehand, but we are a direct consumer brand selling from our website. presumably, the fact you
are in all those stores in germany, and you are in debenhams in the uk, it is important for you as a company. ru selling more because of that? it is about 10% of our business at the moment. so yeah, it is important, but not the core part of our business. revenue up 126 million, but loss of whitening, why? the losses are widening because of a one offer link to our ipo, but the percentage loss on one offer link to our ipo, but the percentage loss on revenue one offer link to our ipo, but the percentage loss on revenue is the same as it was this time last year. ipo is your market flotation for those not familiar with that phrase, what now for your company? you are in department stores in germany and in the uk, selling online, what next? just continue to grow fast and expand into new countries, launch new products, and expand our retail presence across europe. thank you for your time, we appreciated on business live. you're watching business live.
our top story, apple has revealed a high—end smartphone with an "edge—to—edge" screen that has no physical home button. the iphone x is apple's most expensive phone yet, costing upwards of $999. if you are in the uk, it is no cheaper, it is £1000. if you have money in your pocket, you can fork out for it. many of you have got in touch to say it is too expensive. if you have tweeted that nobody has tweeted me to say you are willing to part with money. we will talk about your comments later. apple's latest smartphone will make it easier for developers to tap into the rapidly expanding market for what's known as ‘augmented reality‘. the technology is a mix of real life and computer generated objects. they‘ re superimposed onto real world environments through the phone's camera. virtual reality is different, that's when you create a whole new computer—generated world. but together, the two technologies
are set to grow fivefold by the end of the decade. 0ne company hoping to benefit from this trend is virtualspeech. the business is developing vr experiences to help users improve their public speaking. the software can drop you into a variety of daunting scenarios, including boardrooms, job interviews and networking events. virtualspeech has already been downloaded by over 150,000 users. sophie thompson is with us, co—founder of the business. welcome to the programme. loads of responses to the programme. loads of responses to this on social media, we will talk about them in a minute, "my worst fear during a presentation is people telling me to shut up." that may be to do with the content. tell us may be to do with the content. tell us about the business, we explained a little bit there. you wear a headset, something like this, and that puts you in a scenario that you
mightfind that puts you in a scenario that you might find yourself in onstage. how does it work? you put your mobile phone into the headset and set up to the environment you want to practice in. if you selected a conference room, in. if you selected a conference room , you in. if you selected a conference room, you would be immersed in a conference room with a photorealistic audience looking at you. you can receive feedback on your speech, such as how many filler words you use, your tone and your pace. who is downloading your app? 0ur pace. who is downloading your app? our biggest market is in india, and then probably america, and then the uk. it's its students, is it young people? do you have the knowledge as to who is downloading? it is mainly a younger audience, because of the technology, really. but we have companies and universities who use it as well to train employees, in learning and development initiatives. the point is the people in the audience, for many people, if you are making any public speech, whether it is a best man speech at a wedding, ora whether it is a best man speech at a wedding, or a conference for work, it is the idea of being in front of
so it is the idea of being in front of so many people. does it really work when you know they are not real? the fear is they are all real and want to hear what you are talking about. can you recreate that with something like this? yeah, if you have tried virtual reality, you know it seems realistic. there is something about it that tricks your brain into thinking you are actually there. we have had feedback from people to say they have been terrified by lots of people looking at them. 0bviously, they are not real! if you go on the app store, we have had reviews, and people with autism, saying it has helped them. tell us about your journey, because were you 26 when you came up with the idea? 22. i am 24. sorry! i am ageing you. i don't know where i got 26 from. you started this at warwick university with your co—founder. you came up with your co—founder. you came up with the idea and worse nap up by silicon valley, tell us more. we came up with the idea at business
school, we hated public speaking, it isa school, we hated public speaking, it is a miracle i am here today! 0bviously where it is coming from! we thought vr would be a good idea atjaguar we thought vr would be a good idea at jaguar land rover. we thought vr would be a good idea atjaguar land rover. a we thought vr would be a good idea at jaguar land rover. a few months ago, we were contacted by a start—up accelerator programme in silicon valley called boost vici. we flew out in february until may. you were there for three months, you and your co—founder. i understand it was a flat with bunk beds. you were there with twentysomethings who had great, fantastic ideas in silicon valley. it is another world out there. everyone has a start up. you meet anybody, you might as well ask what their start—up is. anybody, you might as well ask what their start-up is. it is like a chat up their start-up is. it is like a chat up line! what does it let you do? having that financial backing and moral support,
and technical networking support, how does it let you develop the business? it really helped us to monetise it because the basic app is free on the app store, we wanted to make it into a company. it helped us find out what the customers wanted, what corporations and universities would really want. 0ut there, everybody knows what virtual reality is. here, people may have heard of it, but out there, they know. we could talk all day, because i think it is really interesting, but time is against us. thank you so much. thank you. sophie, iwonder is against us. thank you so much. thank you. sophie, i wonder if you are our youngest business only get, maybe. let me give you that back, before we break it. we are going to talk about your tweets and worst fears, a lot of them involve flying and heights. we will delve into the interesting ones ina minute. you can stay ahead with the breaking
business news. the latest details, insight and details from our editors around the world. we want to hear from you, too. get involved on the bbc business live web page. you have been getting in touch today, lots of tweets about apple and your worst fear. apple isn't many people's worst fear, but harry said, "my fear is darkness and an enclosed space." maria, "spiders, i had a panic attack after having won through in my face."
"i am terrified of sunflowers." each to their own. my my worst fear is jumping of high things, i have posted a video of me doing that on holiday. it will amuse you. lucy is back to look at papers. regulators warning of scum of virtual currency. this is about bitcoin being called a fraudulent setup. tell us about it. there is a question— mark about bitcoin and what it is. is it a real currency? it is valuable? what is it is aptly? the technology underneath it i think is going to be widely used, and is
already quite widely used, distributing technology, we all use it. the currencies themselves, they are going to be currencies. you are seeing more icos coming out. i think it is pure spec elation. is there a danger, because it is such a new technology, regulation isn't keeping up technology, regulation isn't keeping up with it, and it is a wild west. and that's fine, it is quite normal. it is unusual to have regulation the head of technology. so there is a different view around the world. i think allowing these things to happen, as long as there is a warning out there, there are risks. that is how they have been dealing with it. so far, that has worked. lucy, thank you for your insight into that. lucy mcdonald from allianz global investors. that is all until tomorrow. have a great day. goodbye. good morning, storm aileen may have
woken you up in the night and provided travel disruption this morning. some strong gusts of wind through the night. the avonmouth, top of the list, 70 mph. most recently, around lincolnshire, gusts of 50-60 recently, around lincolnshire, gusts of 50—60 mph. this is storm aileen, moving towards scandinavia. for many of us, it has cleared away. strong wind in eastern areas of england over the next hour or so. things easing off as the morning goes on. some heavy rain across scotland. quite persistent am particularly in the east of scotland. all the cloud and rain is going to feel cool as well. temperatures at best around 12-13. if well. temperatures at best around 12—13. if you are stubbornly the cloud and bring, a scattering of showers in northern ireland, england
and wales as well. blustery conditions out there, but lengthy dry spells with sunshine in between any showers that form. maximum temperature is around 15, 16 or 17. through this evening and tonight, this weather front across scotland is going to gradually move southwards. as it does, more cloud and rain in southern areas during the early hours of thursday morning. a northerly air stream set up making it feel chilly tonight. temperatures around 9—11. a chilly start on thursday, rain across the midlands, wales, eastern and southern areas of england, before scooting away, and we are left with this brisk northerly wind. that will bring a mixture of sunny spells and showers. again, feeling cool. maximum two matches of 12—14 in northern areas, 16 or 18 across the south. a mixture
of sunshine and showers, showers most frequent around east and west coast of england on friday. more showers into the afternoon. we still have the northerly air stream as we go into the weekend. that will continue to bring showers down on that northerly, making it feel chilly. to summarise, the weekend has sunny spells, particularly on sunday. a scattering of showers, but also feeling cool. maude details on the website. that's it from me. goodbye. hello. it's wedneday, 13th september. it's 9 o'clock. i'm victoria derbyshire. welcome to the programme. the government faces a backlash over its plans to increase public sector pay with unions threatening strike action, labour piling the pressure on and even those workers who are set to benefit, saying it's not nearly enough. i think if they don't end the pay cap across—the—boa rd for all workers then i think there is justification for industrial action.